Fund Launch

Braveheart Investment Group plc
18 June 2007

18 June 2007

                         Braveheart Investment Group plc
                       ('Braveheart', or 'the Company')

     PARTNERSHIP WITH THE UNIVERSITY OF EDINBURGH TO CREATE £25 MILLION FUND

           Investing in commercial investment opportunities emanating 
                               from the University

Braveheart (AIM: BRH), the technology commercialisation and investment
management company, and the University of Edinburgh, Scotland's largest
University ('the University'), announce the creation of a dedicated £25 million
fund ('the Fund'), further extending the relationship between the two parties.

With a maximum value of £25 million, the Fund will have rights of first refusal
to invest in all commercial investment opportunities that arise in respect of
companies and intellectual property emanating from the University, other than in
the field of medicine, veterinary medicine and life sciences, where it may take
a co-investment position.

The Fund, which intends to generate attractive commercial rates of return for
its investors, will seek financial commitments from a number of partners. It is
anticipated that the first round of investment will close in the spring of 2008,
and will involve cornerstone investors including Braveheart itself, the
University, Bank of Scotland and others.

Braveheart will act as fund manager and will issue an information memorandum to
prospective partners in early 2008. This is Braveheart's second such fund,
following the announcement in February this year of the £12 million Strathclyde
Innovation Fund partnership with the University of Strathclyde.

In common with the Strathclyde fund, Braveheart will share 25% of its
performance bonus with the University. In addition, when an investment is made,
a payment will be made to the department which has sponsored the investment
opportunity, thereby encouraging departments within the University to
participate in the commercialisation partnership.

The Fund will have a life of eight years, comprising an investment period of
five years followed by a period of three years in which to monitor and manage
existing investments. There are options to extend the life of the Fund, up to a
maximum aggregate period of 10 years.

Braveheart and the University's commercialisation arm, Edinburgh Research and
Innovation will pool resources and expertise to help with the commercialisation
of companies and their technologies. Braveheart will also use its network of
business angel investors to provide non-executive directors to companies that
are spun-out, making crucial expert advice on corporate development available to
them.

The University of Edinburgh is Scotland's largest University and is rated fifth
in the UK and first in Scotland for research income. The University attracted
research awards of £139 million in 2005/2006, including 23 awards in excess of
£1 million.

In 2005/2006, the University supported the formation of 23 new companies and
businesses. Over the past five years, 57 companies have been created, of which
91 per cent are still trading. These companies have raised around £18 million in
investment funding and employ over 150 staff.

Braveheart has a strong 10-year track record in the field of commercialisation,
and has consistently produced annual rates of return for its investors that
exceed 35 per cent. To date, Braveheart has exited 17 of the companies it has
invested in. Of these, six have been IPOs and three have been trade sales, with
the balance being write-offs.

To date, three University of Edinburgh spin-out companies have developed into
publicly quoted companies. These are Vision Group plc, Wolfson Microelectronics
plc and MicroEmissive Displays Group plc. Both Wolfson and MicroEmissive
Displays were in the Braveheart portfolio prior to them becoming public
companies. The Company also recently announced a £300,000 investment through its
Alpha EIS Fund into Spiral Gateway, a semi-conductor company which spun-out of
the University.

Commenting, Geoffrey Thomson, Chief Executive of Braveheart, said: 'We have had
a strong working relationship with the University since 2003, having supported
eight spin-out companies to date. The creation of the Edinburgh University fund
will act as a further catalyst to the successful commercialisation of the
University's intellectual property. The Fund is also a further opportunity for
Braveheart to extend its ability to make proprietary investments following our
flotation in March this year.

'This Fund offers access to capital for innovative intellectual property
emanating from the University, to support it en route to commercialisation. We
have successfully supported young companies for ten years now and we expect to
finance some really exciting technology with this fund. The University has a
well deserved world class reputation for commercialisation and we are delighted
they wish to strengthen their relationship with us.'

Derek Waddell of the University of Edinburgh, said: 'The University of Edinburgh
has an integrated policy for, and a strong track record in, company formation.
We provide high levels of support to staff and students who wish to create new
companies and, on average, we produce one new company every month. We work hard
to produce companies with a sound technology base and good managerial teams and
look forward to working with Braveheart to develop the Fund, which will not only
offer important early stage finance for these companies, but importantly also
provide our companies with access to experienced management expertise.'

For further information, contact:

Braveheart            Tavistock Communications    University of Edinburgh
Geoffrey Thomson      Richard Sunderland          Derek Waddell
Chief Executive       Rachel Drysdale             Managing Dierctor
T: 01738 587 555      T: 020 7920 3150            Edinburgh Research and
                                                  Innovation
                      [e-mail]   T: 0131 650 9040



About The University of Edinburgh

• The University of Edinburgh was founded in 1583 and is the largest
university in Scotland with over 23,000 students from more than 120 different
countries. In 2005, it was named the Sunday Times Scottish University of the
Year and was described by the paper as 'a model of broad and consistent
excellence'.

• The University of Edinburgh is recognised for its innovative research
across a broad range of disciplines.

Since the Scottish Enterprise Proof of Concept grant programme was initiated, a
total of 26 University of Edinburgh projects have received Proof of Concept
grants, including four in the last year. In the past ten years, the University
of Edinburgh and its network of spin-out and start-up companies have
collectively won 44 SMART awards.

About Braveheart

Braveheart is a technology commercialisation and investment management group
with a proven track record of delivering attractive returns by making
investments in companies which commercialise intellectual property.
Braveheart Ventures, which later became a subsidiary of Braveheart Investment
Group, was formed in 1997 by four Scottish businessmen as a co-investment
vehicle in order to pool their money and knowledge, increase diversification and
reduce risk.

Braveheart makes investments in young, emerging, unlisted companies where there
is potential for significant growth. Typically, Braveheart's investments are
focused on British companies with potential global technology solutions.
However, the Group also maintains limited exposure to more traditional
businesses. Braveheart's portfolio ranges from start-up companies to companies
which are close to an IPO or sale. Each year, out of several hundred business
plans received, around ten investments are made, all of which demonstrate
attractive exit potential. These opportunities arise from Braveheart's network
of contacts, which includes close relationships with universities, innovation
centres, and the Group's own clients.

The Group's business consists of two components:
• an investment management business; and
• direct investment.

These components provide the Group with a mix of regular revenue streams,
principally from investment management fees, and exceptional income through the
realisation of investments upon exit.

The Group's investment management business arranges and manages investments on
behalf of sophisticated private investors, corporate entities and public sector
organisations. Many clients are successful entrepreneurs in their own right and
have extensive track records of starting, building and exiting companies.
Clients are able to choose whether they wish to be active investors (referred to
as advisory clients) or passive investors (referred to as discretionary
clients). Advisory clients build their own portfolio based on opportunities
presented by the Group. Discretionary clients give a mandate to the Group to
build portfolios based upon agreed objectives.

The Group currently has approximately 100 clients who, as well as investing
funds, frequently provide:
• secondary pre-investment due diligence;
• management skills and business development expertise;
• a pool of executive and non-executive directors; and
• further investment opportunities.

Each client has a different portfolio and therefore a different overall return.
An equal investment made in every portfolio company since the Group's formation
would have generated an average compound return of 37 per cent. per annum on
realised investments (these being investments where an exit has been achieved).
Of the 17 realised investments, six have been by way of IPO, and three by way of
trade sale or secondary purchase. Eight have been written off.

In November 2005, Uberior Investments plc (a subsidiary of the Bank of Scotland)
subscribed for 10 per cent. of the enlarged capital of the Company. This
provided the resources for Braveheart to commence making significant direct
investments alongside its clients. As at 31 March 2007 there had been three
realisations of investments directly held by Braveheart which have together
generated a compound return of 110 per cent. per annum.

The Group is based in Perth and has a staff of nine.



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